AN UNUSUAL CASE.

Taranaki Daily News, 24 November 1921, Page 7

AN UNUSUAL CASE.

BEFORE THE SUPREME COURT TROUBLE OVER £lOOO. A case in which an interesting point arose was heard in the Wanganui Supreme Court the other day, before His Honor Mr. Justice Reed, between the Public Trustee (Mr. Izard) as tdminisiratui* of the estate of the late Luke McGorman, Nukurnaru, who killed his wife and committed suicide in October last. Mr. Turnbull appeared for defendant, who was Annie Kathleen McGorman. In the statement of claim it was set out that on A "til 2 the deceased, Luke McGorman, withdrew from his account at the Bank of New Zealand, Wanganui, the sum of £lOOO, and that the £lOOO was deposited by McGorman in the name of the defendant, Annie Kathleen McGorman, by way of fixed deposit, with the Bank of New Zealand for a period of six months at £3 per centum per annum. It was contended that the deceased, in depositing the money in the name of defendant, intended that the defendant should hold the moneys in trust for him, as the defendant, Annie McGorman, was a daughter of deceased, and is a minor, and the plaintiff was unable to safely determine the ownership of the moneys. Mr. Izard, in outlining the case, stated that the defendant had not been living at home for two years, but was at a school at New Plymouth. While in Wanganui one day McGorman got his daughter to come with him to the bank, as he intended to deposit £lOOO in her name. It was not stated at the time that her £lOOO was a gift. Mr. Izard contended that the gift had not been completed, and if there had been a gift, it was purely a gift of the deposit receipt. It might also be inferred that the deceased had desired to avoid the payment of income tax. There was no reason why McGorman, who had a large family, should, have singled out the defendant for preference in 1 regard to a gift-

His Honor asked whether the bank would accept deposits from minors. Mr. Izard replied that the bank clerk did not notice at the time that the defendant. was a minor, although this could easily have been noticed, as the defendant had her hair down. His Honor asked what became of the deposit receipt.

Mr. Izard said the deceased came into the bank about a fortnight later and lifted the receipt, and it was found in his possession. He contended that if the gift was not completed at the date of death it was not a gift. The surrounding circumstances of the gift would also have to be taken into consideration. The estate was worth about £7OOO, and it was unlikely that the father would give such a substantial gift to any one child. Apparently the deceased was doing fairly well, and was attempting to hide this from the Income Tax Department. On the morning of the deposit the deceased mentioned that he intended to deposit the. £ 1000 in his wife’s name, but apparently changed his mind in the afternoon, and made the deposit in defendant’s name. If it were held that it was a complete gift, Mr. Izard contended it was an advancement under the statutory distributions, and he quoted authorities on this point. Cyril W. Raine, manager of the Bank of New Zealand, said deceased called upon him regarding the £lOOO, and intimated that he wanted to place it on fixed deposit in his wife’s name. He told witness that the Government was getting on to the farmers pretty hard in regard to income tax, etc. Later deceased informed witness that he had ; deposited the money in his daughter's name.